Our esteemed colleague in the Economics department was one of dozens of economists from across the nation, including some Nobel Laureates, who signed a full page ad in the NY Times today [Th. 29 Jan 2009]. The ad dissented from the notion that a fiscal stimulus was needed.
I am an Obama supporter who has grave doubts about the efficacy of traditional govt. spending to help the economy (I would favor more revolutionary shifts, such as mandated solar energy production, an end to both wars, and single payer health insurance etc.) I wold be sincerely interested in reading Evan Osborne's explanation how the CATO proposal of more tax cuts and less regulation would lead us out of this mess that so many think were (partly) caused by excessive/misdirected tax cuts and too little regulation.
Countered by Chao Cheng Huang, a leftist true believer:
You are right. I am with you on this issue. However, those smart western trained economists didn't provide any feasible alternative neither. Doing nothing would be even worse. For instance, Citi bank, the once largest bank in the world, sees its share price around $3 (down from mid $50 just over a year ago). Like almost all banks, without bailout and govt. spending, it is insolvent and its equity is going to zero.
I would simply shut up and religiously believe in Obama. Give this guy a chance, since we otherwise don't have other choices, and pray for his success. Hope a miracle happens that saves all of us. We and the entire nation would all go up or down with him.
Huang seems to harbor rather misdirected faith in someone who apparently can not tell the difference between a door and a window .
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in addition to payoffs to favored democrat groups. much of this state inspired crony capitalism.
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